Business news from Ukraine

UAH 1.5 bln from EIB fund balance to be allocated to 140 reconstruction projects – Ministry of Recovery and Restoration

The Interdepartmental Commission for the distribution of the first tranche of the European Investment Bank (EIB) funds recommends to allocate UAH 1.5 billion for the implementation of 140 reconstruction projects in the regions of Ukraine, the press service of the Ministry of Development of Communities, Territories and Infrastructure (Ministry of Restoration) reported.

According to the report, it is about the balance of funds received in 2022 from the EIB in the state budget and which will be directed to new budgetary programs by the decision of the government.

At a meeting on August 28, the commission considered proposals to finance 165 projects for UAH 1.9 billion and agreed on the allocation of funds for 140 eligible projects.

Thus, 49 projects for the development of project documentation were selected, 27 – rehabilitation of health care facilities, 19 – educational institutions, 16 – civil defense facilities, eight – water supply and drainage facilities, two – heat supply.

The leaders in the number of agreed projects were Chernihiv (40 projects), Kherson (14), Donetsk (16), Zaporizhzhya and Mykolayiv regions (9 each).

As reported, in June 2023, the Cabinet of Ministers of Ukraine adopted a resolution on the Procedure and Conditions for Distribution of EIB funds in the amount of UAH 4.4 billion. According to this decision, the Ministry of Rehabilitation is determined as the main administrator of funds and responsible executor of subventions from the state budget to local budgets. Priority is given to those regions that suffered the most as a result of the armed aggression or experienced the greatest burden due to a significant influx of internally displaced persons.

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Zaporizhzhya intends to buy trolleybuses and electric buses with charging stations with EIB funds

The municipal enterprise of urban electric transport Zaporozhelektrotorans has announced two tenders for the purchase of new low-floor trolleybuses and electric buses within the framework of the project “Urban Public Transport of Ukraine” financed with funds from the European Investment Bank (EIB), according to the August 4 EU Official Gazette announcement made public in ProZorro on Monday.

The first tender with an estimated value of EUR4.03 million excluding VAT (including EUR3.03 million EU Neighborhood Investment Platform (NIP) grant) involves the purchase of fully low-floor trolleybuses 11.9 – 12.7 m long with dynamic charging from the catenary network, equipped with a battery for autonomous running. The contract amount includes equipment and tools for maintenance, a set of spare parts, and related services.

Passenger capacity of the trolleybus is at least 100 people, including 30 (+/-10%) seated. Folding seats are not allowed, but there must be one seat for a passenger in a wheelchair and four for passengers with low mobility.

Bids are scheduled to be opened on September 19, 2023, with the arrival date of the first shipment no later than eight months from the date of receipt of the advance payment, for a total contract period of 11 months.

According to experts’ estimates, 14-16 trolleybuses can be purchased for this amount.

The second tender for an estimated contract amount of EUR9.84 million of EIB funds involves the purchase of two-axle low-floor electric buses with a length of 12.5 meters (+/-0.5 meters), including charging stations.

The expected passenger capacity is at least 105 people, including 30 (+/- 10%) seating places. The cabin must have one seat for a passenger in a wheelchair, seats for passengers with low mobility, and a seat for a guide dog.

The contract period is 12 months and the first shipment must be delivered no later than 9 months from the date of receipt of the advance payment.

Disclosure of bids is scheduled for September 20.

Price is not the only criterion for awarding these contracts, but all criteria are specified in the procurement documents only.

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European Investment Bank EU countries allocate more than EUR 400 mln for Ukraine’s restoration

The European Investment Bank (EIB) and the EU member states are allocating more than EUR 400 million for the restoration of Ukraine, Prime Minister of Ukraine Denys Shmyhal said on Thursday evening.

“The EIB and EU Member States are providing over EUR 400 million for the reconstruction of Ukraine. This will help fund the most urgent reconstruction projects for Ukrainians, including critical infrastructure. Grateful to the partners for the quick and timely assistance!” he said on Twitter.

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European Investment Bank to allocate EUR840 mln to restore Ukraine’s infrastructure

Ukraine Recovery Vice Prime Minister Oleksandr Kubrakov and President of the European Investment Bank (EIB) Werner Hoyer signed a Memorandum of Understanding on cooperation in Ukraine recovery projects envisaging allocation of EUR 840 million in 2023.
According to the press service of the Ministry of Community Development, Territories and Infrastructure, the memorandum, signed during the Ukraine Recovery Conference 2023 (London, June 21-22), provides for the allocation of EUR840 million for the implementation in 2023 of priority projects to restore the infrastructure of Ukraine.
Kubrakov reminded that since the beginning of Russia’s full-scale invasion, the European Investment Bank has allocated EUR 1.7 billion in emergency aid to Ukraine. This money was used for the needs of the state budget and supported the economy of Ukraine.
“Today we are expanding our cooperation on the reconstruction of Ukraine. We will work together on a number of projects aimed at restoring municipal and transport infrastructure, improving energy efficiency, etc. We appreciate the support the Bank has already provided to Ukrainians, and we thank EIB President Werner Hoyer for his cooperation and the Bank’s critical role for Ukraine’s sustainability during the war,” Kubrakov said.
It is noted that EUR840 million, envisaged by the Memorandum, will be used for preparation, evaluation, financing and implementation of projects on reconstruction of municipal infrastructure (schools, hospitals, etc.); public buildings with consideration of energy efficiency; water supply and sewage infrastructure; transport networks and public transport.
The EIB will also finance the development of digital transformation and the strengthening of cybersecurity.
In addition, the Memorandum provides for the cooperation of Ukraine and the EIB on the use of a special trust fund from the EIB – EU for Ukraine Fund and lending projects in Ukraine with the support of the European Fund for Sustainable Development Plus (EFSD +) guarantees.
The Ministry of Reconstruction and the EIB will work on the implementation and application of a package of technical and consulting assistance for Ukraine worth about EUR100 million.
The European Investment Bank is one of the largest creditors of Ukraine. To date, the EIB’s portfolio of projects with the Ukrainian public and municipal sectors and businesses reaches more than EUR 7 billion.

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Selection of recovery projects with attraction of financing from European Investment Bank begins

The European Investment Bank (EIB), together with the Ministry for Communities, Territories and Infrastructure Development of Ukraine, announced the launch of the selection of projects for the recovery, rebuilding and overhaul of schools, kindergartens, administrative centers and housing and utility services, and providing housing for internally displaced persons (IDPs), the press service of the Ministry of Restoration has said.
The projects will be implemented through financial agreements between Ukraine and the EIB. These are the Ukraine Recovery Programme (projects from local governments) and the Emergency Loan Program for the Reconstruction of Ukraine (projects of public utilities and municipalities).
As the ministry said in the press release, the projects will be implemented in regions affected by the armed aggression of the Russian Federation and faced a burden on social infrastructure due to a significant number of IDPs. The project implementation period is from one to three years, depending on the programme. The funds will be sent to the communities as a subvention from the state budget.
The deadline for submitting projects for participation in the Ukraine Recovery Programme is until June 25, 2023, in the Emergency Loan Program for the Reconstruction of Ukraine – until June 2.

Ukraine to receive almost EUR 1.6 bln from EIB

The European Investment Bank (EIB) will provide EUR 1.59 billion supported by guarantees from the EU budget, to help Ukraine repair the most essential damaged infrastructure and resume critically important projects addressing the urgent needs of Ukrainian people, the European Commission said on Tuesday.
“This EIB support will keep strategic public sector companies financially viable and able to carry out urgent repairs of critical infrastructure, resume the provision of essential services and address other immediate needs of the Ukrainian people, including those displaced by Russia’s war,” European Commission Executive Vice-President Valdis Dombrovskis said.
He assured that “the European Commission will keep working with EU Member States and our international partners to support Ukraine on every level — for as long as it takes.”
The European Commission said that This is the second package of support for Ukraine under the EIB Ukraine solidarity urgent response developed in close cooperation with the European Commission. It follows an emergency support package of EUR 668 million.
Like the first one, this new financing is offered at favourable terms including long tenors.
The bank will immediately disburse EUR 1.05 billion. It will help the Ukrainian government to cover priority short-term financing needs, provide support to strategic state-owned companies, ensure urgent repairs of damaged infrastructure, resume the provision of disrupted municipal services, and support urgent energy and energy efficiency measures in preparation for the cold season.
Another EUR 540 million will be used to resume implementation of EIB-financed projects in Ukraine where possible. The selected projects will cover energy, energy efficiency, roads, transport, education and infrastructure, as well as reconstruction and recovery programmes, the European Commission said.